my country's gold consumption in 2023 will be 1,089.69 tons, a year-on-year increase of 8.78% -
Higher gold prices drive gold consumption to heat up
Data recently released by the China Gold Association shows that in 2023, national gold consumption will be 1,089.69 tons, an increase of 8.78% compared with the same period in 2022. Among them, gold jewelry was 706.48 tons, a year-on-year increase of 7.97%; gold bars and gold coins were 299.60 tons, a year-on-year increase of 15.70%.
"Promoted by a series of policies to boost consumption, the national consumer market continues to recover, and gold and silver jewelry has become the fastest growing category among all commodity retail categories throughout the year." The relevant person in charge of the China Gold Association said that gold jewelry processing and retail companies have continued to In the design of gold jewelry products, gold jewelry with small weight and new styles are favored by consumers, which promotes the increase in gold jewelry consumption. The high attention paid to physical gold investment has led to rapid growth in the consumption of gold bars and gold coins with relatively low premiums.
Industry insiders believe that the hot gold consumption market is driven by many factors, among which the continued rise in gold prices is an important reason. At the end of December 2023, the year-end price of spot gold in London was US$2,062.40 per ounce, an increase of 12.39% from the opening price of US$1,835.05 per ounce at the beginning of 2023. The closing price of Au9999 gold on the Shanghai Gold Exchange at the end of December was 479.59 yuan/gram, an increase of 16.69% from the opening price at the beginning of 2023. The weighted average price for the year was 449.05 yuan/gram, an increase of 14.97% from the previous year.
Zhou Maohua, a macro researcher at the Financial Markets Department of China Everbright Bank, said that in 2023, the international gold price hit new highs many times, and some investors increased their consumption driven by the mentality of "buying up, not buying down". At the same time, against the background of global financial market volatility, gold performed better than other major RMB assets, attracting investor attention.
"my country is the world's largest gold consumer, and residents love to buy gold jewelry, gold coins, investment gold bars, etc. to meet their needs for viewing, collection, and value preservation reserves." Wu Dan, a researcher at the Bank of China Research Institute, said that my country's gold consumption in 2023 The substantial growth is mainly due to the increase in residents' consumption and the increase in demand for gold. In addition, the sales side has strengthened the design of gold jewelry, enhanced publicity, and residents' attention has further increased; secondly, affected by uncertainties at home and abroad, the global gold price is in an upward cycle; thirdly, last year was a big year for global gold consumption. Some residents follow the market rhythm and increase their demand for gold hoarding.
Jia Shuchang, a senior analyst at the World Gold Council, said that in 2023, the design of the gold jewelry industry will continue to iterate, and products will continue to be introduced, adapting to the changing tastes of consumers and helping to stimulate demand.
It is worth mentioning that many investors also participate in investment by purchasing gold ETFs (traded open-end index funds). In 2023, the size of domestic gold ETF holdings showed a steady growth trend. As of the end of the year, domestic gold ETF holdings were approximately 61.47 tons, an increase of 10.04 tons compared with the same period in 2022, and a year-on-year increase of 19.53%.
In addition, the "gold buying wave" of many central banks around the world in 2023 will also boost gold demand to a certain extent. The People's Bank of China increased its gold holdings by 224.88 tons last year. From November 2022 to December 2023, the People's Bank of China has increased its gold holdings for 14 consecutive months.
Zhou Maohua said that domestic gold demand is expected to maintain steady growth this year. On the one hand, my country's economy continues to recover, which will drive the expansion of gold consumer demand. On the other hand, the current global geopolitical conflicts are still fermenting, and developed economies are gradually transitioning to interest rate cuts, which will also provide certain support for gold prices.
U Thant also believes that domestic gold sales are expected to remain hot this year, and residents will still maintain a high enthusiasm for consuming physical gold. "There are still uncertainties in the global political and economic situation in 2024, risk aversion in domestic and foreign markets is at a high level, and the market expects that the U.S. dollar index will be difficult to continue last year's strong trend. These will further push up the price of gold and will also stimulate residents to reserve gold. need."
Economic Daily reporter Ma Chunyang